Dow Jones Newswires reported the companies will build a floating vessel capable of producing up to 7 million metric tons of LNG per year. That is twice the amount of LNG Royal Dutch Shell plans to develop at its floating LNG facility in the Browse Basin.

The Scarborough field is located about 186 miles from the coastline. ExxonMobile will be the project operator, the source reported, and the company may be just days from submitting project planning documents to Australian environmental authorities.

Analysts recently said coast pressures in Western Australia have made floating LNG technology a more economic option, The Australian reported. Woodside Petroleum Ltd. executive Gary Gray said floating LNG facilities in Western Australia could reduce capital investments costs and improve environmental effectiveness, the article stated.

"Floating LNG brings a unique capability and solution to the development of offshore oil and gas resources," said Gray.